Corpsec Hotline
August 05, 2005
Print Media Sector Opened to Foreign Venture Capital Investors, Foreign Institutional Investors, and Non Resident Indians

The Government of India, vide a cabinet decision on June 16, 2005, permitted investments by Non-Resident Indians ("NRIs")/Persons of Indian Origin ("PIOs") and portfolio investments by recognized Foreign Institutional Investors ("FIIs") in news and current affairs publications, in addition to Foreign Direct Investment ("FDI") up to an aggregate sectoral cap of 26 percent.

Subsequently on July 13, 2005, the Ministry of Information and Broadcasting ("MIB") issued detailed guidelines for publication of newspapers and periodicals dealing with news and current affairs.

Earlier In June 2005, the MIB had completely liberalized the non-news category by enhancing the foreign investment cap, which contemplated both FDI and FII investment, from 74 percent to 100 percent in the case of Indian entities publishing scientific/ technical/specialty magazines / periodicals/ journals.

Accordingly, the Reserve Bank of India has made appropriate amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (commonly referred to as the FDI Regulations), vide notification No. FEMA.138/2005-RB dated July 22, 2005, whereby the previous prohibition on investments in the print media sector by (i) Foreign Venture Capital Investors registered with the Securities and Exchange Board of India, (ii) FIIs under the Portfolio Investment Scheme ("PIS"), and (iii) NRI's under the PIS or on non-repatriation basis other than under the PIS have been removed.

 

You can direct your queries or comments to the authors

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA Connect

Connect with us at events, 
conferences and seminars.

Corpsec Hotline

August 05, 2005

Print Media Sector Opened to Foreign Venture Capital Investors, Foreign Institutional Investors, and Non Resident Indians

The Government of India, vide a cabinet decision on June 16, 2005, permitted investments by Non-Resident Indians ("NRIs")/Persons of Indian Origin ("PIOs") and portfolio investments by recognized Foreign Institutional Investors ("FIIs") in news and current affairs publications, in addition to Foreign Direct Investment ("FDI") up to an aggregate sectoral cap of 26 percent.

Subsequently on July 13, 2005, the Ministry of Information and Broadcasting ("MIB") issued detailed guidelines for publication of newspapers and periodicals dealing with news and current affairs.

Earlier In June 2005, the MIB had completely liberalized the non-news category by enhancing the foreign investment cap, which contemplated both FDI and FII investment, from 74 percent to 100 percent in the case of Indian entities publishing scientific/ technical/specialty magazines / periodicals/ journals.

Accordingly, the Reserve Bank of India has made appropriate amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (commonly referred to as the FDI Regulations), vide notification No. FEMA.138/2005-RB dated July 22, 2005, whereby the previous prohibition on investments in the print media sector by (i) Foreign Venture Capital Investors registered with the Securities and Exchange Board of India, (ii) FIIs under the Portfolio Investment Scheme ("PIS"), and (iii) NRI's under the PIS or on non-repatriation basis other than under the PIS have been removed.

 

You can direct your queries or comments to the authors

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA Connect

Connect with us at events, 
conferences and seminars.